You work for the logistics company. Your director knows that you had modelling class because you mentioned it in the interview when the compny hired you. She asks you to make a forecast for the business plan. You asked about the key assumptions and explained that you first will perform a ratio analysis. She understood your methodology and replied: "Before we go into details, I would like to see a big picture. Let

Financial Management: Theory & Practice
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Author:Brigham
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Chapter2: Financial Statements, Cash Flow,and Taxes
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Problem 1Q: Define each of the following terms: Annual report; balance sheet; income statement Common...
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You work for the logistics company. Your director knows that you had
modelling class because you mentioned it in the interview when the
compny hired you. She asks you to make a forecast for the business
plan. You asked about the key assumptions and explained that you first
will perform a ratio analysis. She understood your methodology and
replied: "Before we go into details, I would like to see a big picture. Let
calculate the actaul growth rate on average for the last two years for
both revenue segments. Transportation Industry is expected to grow at
5% going foreward. Wharehousing is expected to follow the trend. Think
about your results in each segment, make reasonable assumtions about
their future growth rates. All the operating expanses will have the same
weight as in the last two years. Keep non operating income fixed as in
1) Calculate growth rates for revenue segments. Explain.
2) Make vertical analysis of the Income statement items
3) Complete a forecast for the next year
4) Explain how you calculated the tax rate
Transcribed Image Text:You work for the logistics company. Your director knows that you had modelling class because you mentioned it in the interview when the compny hired you. She asks you to make a forecast for the business plan. You asked about the key assumptions and explained that you first will perform a ratio analysis. She understood your methodology and replied: "Before we go into details, I would like to see a big picture. Let calculate the actaul growth rate on average for the last two years for both revenue segments. Transportation Industry is expected to grow at 5% going foreward. Wharehousing is expected to follow the trend. Think about your results in each segment, make reasonable assumtions about their future growth rates. All the operating expanses will have the same weight as in the last two years. Keep non operating income fixed as in 1) Calculate growth rates for revenue segments. Explain. 2) Make vertical analysis of the Income statement items 3) Complete a forecast for the next year 4) Explain how you calculated the tax rate
InThousands of USD except Per Share
Revenue
Transportation revenue
Warehousing revenue
Expenses
Selling & Marketing
General and Administrative
Other operating expense
Operating Income (Loss)
Interest and dividend (income) NB: Think about your signs!
Interst expense
Income (Loss) before tax
Tax expense
Net Income, GAAP
2017
46 512,50
44 582,50
1 930,00
3 000,00
10 000,00
772,50
32 740,00
(75,00)
1 125,00
31 690,00
8 239,40
23 450,60
2018
49 120,00
46 195,00
2 925,00
3 250,00
10 500,00
1 390,00
33 980,00
(125,00)
1 200,00
32 905,00
8 884,35
24 020,65
2019
51 062,50
46 912,50
4 150,00
3 625,00
10 750,00
405,00
36 282,50
(115,00)
1 625,00
34 772,50
8 693,13
26 079,38
Transcribed Image Text:InThousands of USD except Per Share Revenue Transportation revenue Warehousing revenue Expenses Selling & Marketing General and Administrative Other operating expense Operating Income (Loss) Interest and dividend (income) NB: Think about your signs! Interst expense Income (Loss) before tax Tax expense Net Income, GAAP 2017 46 512,50 44 582,50 1 930,00 3 000,00 10 000,00 772,50 32 740,00 (75,00) 1 125,00 31 690,00 8 239,40 23 450,60 2018 49 120,00 46 195,00 2 925,00 3 250,00 10 500,00 1 390,00 33 980,00 (125,00) 1 200,00 32 905,00 8 884,35 24 020,65 2019 51 062,50 46 912,50 4 150,00 3 625,00 10 750,00 405,00 36 282,50 (115,00) 1 625,00 34 772,50 8 693,13 26 079,38
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